CHANGES EFFECTIVE January 1, 2023:

Per the Washington State Legislature, the Department of Revenue is required to adjust the selling price thresholds for real estate excise tax every fourth year.

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Washington’s real estate excise tax (REET) tier system has changed, increasing each sales price tier by $25,000 and each subsequent threshold changed accordingly. The infographic below illustrates the new tiered rates by sales price.

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Previously, local municipalities added their excise tax on top of the state tax, with most cities in our area adding 0.50 percent.

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Effective January 1, 2023, Washington State began calculating real estate excise taxes based upon a tier system as follows:

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Arate of 1.78% percent is imposed on the sale of undeveloped land, timberland,agricultural land, and water or mineral rights, regardless of selling price.For more information and excise tax examples, please visit: https://dor.wa.gov/find-taxes-rates/other-taxes/real-estate-excise-tax

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